PITTSBURGH – The Kraft Heinz Co. withdrew its offer to acquire Unilever P.L.C. on Feb. 19. The announcement brings to a close a proposal that would have broadened Kraft Heinz’s business beyond food and beverage, and into emerging markets around the world.
On Feb. 17, Kraft Heinz offered to acquire Unilever for $50 per share, which included $30.23 in cash and the remainder in stock for a total value of approximately $143 billion. Unilever quickly rejected the offer, calling it too low.
On Feb. 19, the two companies issued a joint statement that said, “Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies. Unilever and Kraft Heinz hold each other in high regard. Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever.”
A combination of Kraft Heinz and Unilever would have created a company with sales of approximately $83 billion and a global footprint that extended throughout food and beverage and into the personal care categories. Unilever operates three principal divisions: The Americas, Europe and a combination of global clusters, Asia, AMET (Africa, Middle East and Turkey) and RUB (Russia, Ukraine and Belarus).In 2016, 43% of sales were in developed markets and 57% were in emerging markets.